Search Documents

By Goldie R

The use of options theory in business has become well established in recent years and is currently one of the most exciting areas of current finance research. The theory can be used to value levered firms, and streams of contingent payments. This technique also has very practical applications in the areas of capital investment analysis and the valuation of equities in the natural resource industry. The use of options theory has been well accepted and used for many years in the trading of commodity options and futures contracts, in banking and insurance and in other industries. It also can be used to value such diverse contingent claims problems as the income tax liabilities of the firm and share underwriting agreements.Its application to the more complex options, such as those present in the resource industry, is only now becoming known. This lag is, at least partially, due to the difficult mathematics involved in solving complex options problems. Another factor is the almost overwhelming abundance of uncertainties, such as grade, tons and other natural risks, which must be considered in the evaluation mining projects.

Jan 1, 1990

The seventies was a decade of intensive hydrometallurgical activity, firstly for copper recovery, then uranium, and finally gold. In comminution, semi-autogenous grinding was applied to uranium and gold ores. In leaching there were extensive investigations into pressure and in-situ systems, and into ammonia and chloride leaching processes. Solvent extraction became a major unit operation for copper recovery. New reagents and equipment were introduced. There was a resurgence of ion exchange for uranium as low grade sources were tapped and continuous ion exchange systems developed. Carbon-in-pulp technology came to the fore for gold recovery with the development of desorption and electrowinning systems. Electrowinning was widely applied for copper in conjunction with solvent extraction. There was a continued move to greater mechanisation and higher current density. There were important developments in solid-liquid separation such as high capacity thickeners, belt filters and sand filters. Many of these trends will continue in the eighties. Interesting new developments can be expected.

Jan 1, 1981

By Torrance AC

A joint research programme conducted by BHP Central Research Laboratories and Du Pont Wesfarmers Pty Ltd examined the effect of the size of cast primers on the run up and steady state detonation veloci- ties of ammonium nitrate based explosives as a function of blasthole diameter. Both continuous and point to point velocity of detonation meas- urement techniques were used. The field trials examined a number of the Du Pont HDP series of primers in conjunction with ANFO, emulsion and watergel explosives. Results indicate that the run up velocity of 187mm diameter ANFO charges is negligible using cast primers as small as 150g. owever, emulsion and watergel explosives did exhibit run up in both 187 and 311mm diameter blastholes, independent of the size of primer. This could last from 7 to 10 blasthole diameters.

Jan 1, 1988

During the course of an investigation into the fundamental chemistry of the cyanide process, it became evident that the usual method of determining protective alkalinity was not completely satisfactory. T.he routine method for the determination of protective alkali by first removing free cyanide by the addition of silver nitrate, followed by titration of alkali with dilute acid using. phenolphthalein as indicator, can be shown to give correct results only when the alkali is a strong base. For other sUbstances, the alkali so determined is not the protective alkali. In view of the complications associated with the presence of zinc in cyanide solutions the discussion will be restricted in the first place to solutions free from zinc. Until the chemistry of simple cyanide solutions is placed on a quantitative basis it will be difficult to elucidate the behaviour of complex mill solutions.By the use of physico-chemical theory, it is possible to treat certain aspects of 'the chemistry of cyanide solutions in a manner which not only illustrates the important variables involved, but which also shows the need for care in interpretIng results obtained by conventional methods.In the following, comparatively simple systems are discussed; the principles established should be of use in interpreting the behaviour of more complex solutions. The methods described are not intended for routine work, but may be regarded as supplementary to the usual analysis carried out for the control of plant solutions, or as alternatives to be used when the latter do not appear to be satisfactory.

Jan 1, 1948

Tin mining has taken place in the New England region of New South Wales since 1872. Until fairly recent times there was little pro- vision made for environmental protection. Mining methods,which included ground sluicing and open cutting,had considerable environmental impact. Much of the topsoil was lost and there is little vegetation on the infertile and at times toxic, subsoil. Thus much of the lands disturbed by mining have not been stabilised and are eroding, causing extensive pollution of adjacent watercourses. There are more than 1500ha of abandoned tin mine sites in the New England, representing one of the worst rehabilitation problems in New South Wales and reflecting poorly on the mining industry as a whole. Recent tin mining operations incorporate progressive rehabilitation in their mining cycle. Topsoil is stockpiled and later respread. This topsoil contains a seed source, facilitating revegetation and thus stabilisation. The tin mining industry, under considerable cost pressures at present, is seeking a cost- effective revegetation technique. Most of the mines in the New England are situated in a forest environment. Trials have been conducted in the past using exotic pasture species with limited success due to the characteristics of the subsoil. Other revege- tation trials have used pine or eucalypt tree species. The cost of these techniques is a major disadvantage. Certain acacias species were observed colonising disturbed tin mining areas on very infertile subsoils. Acacias have a number of characteristics indicating a possible applic- ations in mine rehabilitation programmes.

Jan 1, 1987

Major changes occurred in the management of loss prevention and risk management at operations in North and South America due to increased insurance premiums following the Olympic Dam fire in Australia in 2001. There are many different scenarios on how fires can develop and the estimated maximum losses (EML) those fires can incur. The EML is utilised by insurance companies to determine the cost of insurance premiums. The cost of insurance can be controlled at existing and newly designed solvent extraction (SX) plants by using risk reduction methods and design criteria to limit the fire exposure. A review of data collected during several loss prevention risk assessments can show how a budget can be protected from dramatically increased premiums and see which design of SX plant and fire protection standards best apply to your operations. The paper will investigate the pitfalls of existing materials of construction, capacity, geography, management practices, fire risk minimisation, and fire suppression systems. Intelligent engineering and managerial improvements implemented by the operations in the Americas in the past two years have further minimised the fire potential and benefited companies in insurance renewal negotiations.

Jan 1, 2003

By Collins BJ

Basic principles of stack injection are outlined and supported by calculations of thermal, chemical and aerodynamic requirements of an ideal 4000 tpd furnace. Calculated results show that these requirements vary with conversion of FeO, and that best performance may be expected with XFeO = 1.0 for which calculated production is 6919 tpd and coke rate is only 211 kg/thm. Calculations are also presented for a cycled injection. Discussions show that stack injection is a good way of overcoming softening problems and meeting the demand for iron in a fluctuating demand situation when it exceeds the maximum capacity of a furnace.

Jan 1, 1975

The present-day arrangement of old ( ? ) Palaeozoic and Mesozoic metamorphic rocks in eastern New Guinea lends some support to the concept of tens:konal dilation in Upper Cretaceous to Lower Tertiary time, It appears that the metamorphic core of the Morobe Arc (Glaessner, 1950) could have been rifted from the eastern flank of Cape York Peninsula, and then been carried north-eastward by some unspecified sub-crustal. tangential force. In the early stages of the rift it is thought.that submarine basalts may have extruded up the .'tension .scar and spread across the floor of the opening rift. Thick clastic muddy sediments derived almost exclusively from the rifted block were then spread across the floor of the opening rift. Later ~ertiary lateral movements from east to west along the Markham-Ramu Fault appear to have bent the northern end of the Morobe Arc towards the.east,,causing the intense folding in the sediments of the Aure Trough.

Jan 1, 1962

In simple terms, heap leaching means the removal in solution of valuable elements from a heap of material, and their recovery from that solution. The heap of material can consist of essentially unprocessed ore, sub-ore, low grade gangue and country rock, tailings from other upgrading processes, or artificial materials such as slags or furnace and flue products. The solvents can be solutions of acids (commonly sulphuric acid because of cost) or of other chemicals such as cyanides. Because of cost factors the solutions are aqueous; because of this, leaching operations may be curtailed in cold-climate areas. The guiding principle must surely be `large volume / low cost'. Since solutions are generally easier to manage than gases, there is a strong incentive for replacing roasting of materials by leaching, eg arsenical gold ores. Where sulphides are present in the material to be leached, these may provide the necessary acid, with or without the aid of bacteria, to dissolve and extract the recoverable metals. The mineralogical aspects of the operation relate to the nature of the `ore' and gangue minerals present in the heap, their textural relationships, and their effect on the process itself.

Jan 1, 1994

FINANCE FOR EXPLORATION Two factors have basic importance in relation to the availability of finance: the apparent success of continuing exploration activity and tax concessions. It is not proposed to discuss the effect of existing tax incentives, as these have already been outlined and are generally accepted as being reasonably attractive; certainly not a deterrent to possible investors. However, it is obvious that the greater the tax incentives, the greater the amount of money that will be attracted, and the wider the number of people who can be brought into the pool. If, as is suggested, the chance of discovery is related to expenditure and effort, then the more money attracted, the better the prospects of significant finds. It is probably correct to assume that the largest expenditure in mining will come from, or be induced by, people expert in the field, people who are fully aware of the risks and benefits and perhaps making conservative decisions because of this awareness. Insofar as the general public is concerned, while in the first burst of enthusiasm it will frequently follow any promoter, in the long run it too will become more sophisticated and will strongly support only those promoters and companies of good repute and proven record.

Jan 1, 1971

One of the strategies introduced within Pasminco Mining to survive low commodity prices is to formally implement a `Quality Education System'. The net result has been a consistent approach to quality within and across mine sites. This `quality system' has been adopted in the technical computing environment and the immediate benefits have been: ò A clearer understanding of the systems, processes and relationships that involve technical computing. ò A re-focussing on customer (user) requirements. ò Inclusion of managers as customers with their own requirements of performance and quality, in addition to access to Executive Information. ò New ways to measure the `performance' of a technical computing environment which includes using maintenance costs. Observations are that there is an overlap between `traditional' information technology (IT) methodologies and quality systems being put in place in the broader workplace. This overlap is most apparent in the area of analysing customer requirements. In the IT environment customers are viewed as users, and their requirements determined by undertaking a requirements analysis. A data flow diagram traditionally used in the IT environment and not as a tool in quality systems, has been used in a novel manner to help identify the customers of the technical computing department. It has also been useful in illustrating the work processes and relationships between the entities in this diagram and in directing the future initiatives needed to fulfil the customers' changing requirements.

Jan 1, 1995

In the future, Illawarra Coal, the primary metallurgical coal producer in the southern coal fields of New South Wales, will face many unique challenges not found in other coal or minerals production areas. To manage these challenges and determine the best strategy for the business, Illawarra Coal has adopted a systematic strategic planning process, which starts from the broadest possible options analysis and culminates in a ægo-forwardÆ operating case that individual mine sites use as the basis for short-term planning. This paper will discuss two major topics. Firstly an overview of the Illawarra Coal and BHP Billiton strategic planning processes. This will demonstrate the range of variables and inputs that are required for the planning process, and the system which is followed to evaluate different alternatives for the extraction of the resource. Secondly, having discussed the primary external and internal factors that must be accounted for in the planning process, and the main issues affecting the viability and likelihood of each alternative, the paper will discuss the particular challenges that Illawarra Coal will face in the coming decades. These challenges include: market and price uncertainty; managing impact on surface features, infrastructure and environment; community interaction; transport and logistics constraints; unknown mining environments; lack of geological knowledge; limited surface access for new mining domains; changing attitudes to longwall mining in the Illawarra; ageing workforce; and cost and overhead management. The paper intends to discuss how these issues impact the business currently and how they are incorporated into Life of Asset plans and overall corporate strategy for Illawarra Coal.

Jan 1, 2007

By V Narayanaswamy

SustainabilityÆs imperative of economic development in tandem with social advancement and environmental protection is widely accepted, but much debate remains about the practical implications for the minerals processing technologies and practices for the future. Experience in other industry sectors however suggests that sustainability can be a value-adding framework for innovation in processing technologies, business models and management systems. This position paper explores how sustainability can drive innovation in minerals processing, by reviewing pertinent ideas and experiences gained in non-minerals sectors. Sustainable innovations can generally be broadly ranked from incremental to transformative, with each category having its own typical improvement potential, timescale and technological and operational challenges. This leads to a æmud mapÆ for sustainable innovation in minerals processing with three distinct tracks: eco-efficient operations; sustainable plant design and sustainable processing. Competing models for the sustainable innovation process through either forecasting or back-casting, have in common the strong reliance on vision, perspective and competency, which in turn highlights the importance of sustainability frameworks. Such sustainability frameworks provide normative goals and option elicitation prompts to assist with the analysis of current processes and scoping of more sustainable alternatives. A comparative analysis of five prominent environmental sustainability frameworks revealed three cross cutting sustainability themes that challenge current resource processing technologies and practices. These are: fate of materials (zero dissipation of materials); compatibility of materials and processes; and materials intensity of industrial products and processes. Although the sustainability concepts presented in this paper have not been extensively road tested in the minerals processing industry, there is ample evidence that recent initiatives in the Australian resource sector illustrate the applicability of the proposed framework. It is therefore argued that more in-depth assessment of sustainable innovation concepts would be a valuable contribution to the sustainable resource processing theory and practice.

Jan 1, 2004

By Fitchett K

Refractory application in the major iron and steelmaking units are discussed. Mechanis- ms of refractory consumption as revealed by pre- vious studies are reviewed and current practice is evaluated. Deficiencies in refractories now in use are noted and some lines of development are indicated. The iron and steelmaking units discussed are generally restricted to those subject to slagging, structural change or erosion at steel or iron making temperatures, and include the Blast Furnace, Hot Blast Stoves, Hot Metal Ladles, Basic Oxygen Furnaces, Continuous Cast- ing Units and Steel Teeming Ladles.

Jan 1, 1972

Metal smelting is seeing a continual increase in intensity and throughput in recent years. This is done with increasing demand for cost/capital efficiency, higher recovery, and managed environmental impact, among other things. With the development of more intense smelting processes, the issues of refractory wear, mixing and separation of reacting phases and the nature of the reactions between them become more prominent. Understanding of interfacial phenomena is in growing need, in addition to knowledge of the bulk properties of equilibrium and transportation. The GKW CRC has a suite of projects aimed at developing various techniques and expertise to provide information of interfaces in metallurgical systems. This article illustrates some recent development in this area, particularly in studies of melt/refractory contacts, the determination of surface and interfacial tension of metal/slag/matte melts, modelling slag-metal mixing and studies of kinetics of the smelting reactions.

Jan 1, 2000

By D Cioclea, I Toth

Coal mining can lead to the occurrence of spontaneous combustion events. If these events are not prevented they can give rise to fires that have major adverse effects on the mine plan. After studying the chemical structure of coal, the theories of self-ignition and of the oxidation reaction of the organic compounds, two new technologies have been developed for fire prevention based on the inhibition of coal oxidation. The first technology consists of spraying water drops mixed with inhibiting substances into goaves. The second consists of the infusion of a mixture made of several chemical compounds. Tests performed in situ showed the new inhibition technologies to be highly effective even for longwalls mining coal with a high reactivity from the point of view of self-ignition.

Jan 1, 2005

Examples are given of the different management approaches used to improve a mine's profitability and the view is put that attention to mine design is very important but easily overlooked. The need for humans to use graphics to ccanprehend and develop strategies to exploit ore deposits is discussed. The use of two and three dimensional representations for geology, mine design and survey data is reviewed. The current use of computers in mining is discussed and reasons for the limited use of ccanputer graphis are proposed. Suggestions are made as to how more extensive use may be made of catputer graphics in mining by using recent and possibly forthcoming advances in computer hardware and by adopting certain software approaches.

Jan 1, 1983

Before exploration programmes or minerals developments are formulated, a mining company ought to assess how capital can be returned if the project is successful. A fact not well appreciated by the minerals community is that it is often difficult to get money out of many Pacific Rim countries due to special foreign exchange controls or restrictions on dividend or capital repatriation. On top of this risk are factors such as creeping expropriation through administrative, fiscal, or corruption pressures; environmental regulations; terrorists; and organised labour and political activists. Political risk is much more than just expropriation or nationalisation.Political risk factors can make or break a project in many PacRim countries and just the cost of delays and negotiations can insidiously affect project economics. This unpalatable thought, however, can be readily addressed by either legal structuring e.g. offshore proceeds accounts, offset/back-to-back currency hedges, or political risk insurance for the equity as well as any subsequent project development debt.

Jan 1, 1990

A resource rent taxation scheme is based on the concept of taxing the rent or surplus profit generated from primary industry activity. Rent has been defined as profits that remain after deduction of company income which corresponds to the minimum return necessary to attract private investment to a new project.Rent taxation schemes on the mining industry within the Australasian region have been examined and widely discussed during the decades of the 1970s and 1980s. Forms of resource rent taxation schemes have been imposed on Papua New Guinea mining, some sectors of Australian petroleum, the Roxby Downs venture and are being discussed for the New South Wales coal industry. While no introduced applications have been pure rent taxation schemes, the concept has generally come to encompass arrangements which tax rent at a partial rate which may or may not vary with the level of profitability or return.An examination is made of a number of the more recent schemes. Aspects which should be considered in implementation of new forms of this taxation are discussed. It is concluded that there is an increased acceptance for this form of taxation on the Australian mining industry.

Jan 1, 1990

By R Farana

The future challenges in mining instrumentation, mainly on future intelligent mines, are to continue providing instruments with the highest level of reliability at the lowest possible cost, and also to take advantage of technology existing in other industries and to adapt it to the mining context. New wireless instruments (smart sensors, smart actuators, smart controllers) would also be very useful, as well as instruments fully adapted to the monitoring of large movements that are observed, in both underground and open pit mines. Mining instrumentation is found to various degrees in most mines, both open pit and underground. Smart mining instruments present a certain number of aspects specific to the environment in which the instruments are installed. Namely, the instruments can be installed either for short-term or long-term purposes. The mining industry is always looking for useful instruments that can provide relevant information on ground behaviour adjacent to mining stopes or permanent infrastructure. The instruments must meet the various criteria, and must also evolve with the new mining technologies that are continuously being implemented. A strong collaboration between the mining industry, research organisations, and instrument manufacturers is the key to meeting these objectives. This contribution describes the current trends on smart sensors and smart instrumentation with Wireless LAN support.

Jan 1, 2003